South Carolina Man Pleads Guilty In $6 Million Ponzi Scheme

In Anderson, South Carolina on Wednesday, Daryl Batts pleaded guilty before US District Judge G. Ross Anderson, Jr. to a two-count information charging him with securities fraud and mail fraud. Batts, owner of Comprehensive Financial Solutions Inc. in Easley, admitted defrauding about 150 investors of about $5 million in what prosecutors described as a classic Ponzi scheme. Batts took in about $6 million over a 6 year period to be invested in securities and life insurance products but never invested any of the money, keeping investors at bay with falsified statements and eventually paying out about $1 million to old investors with new investors’ money. Much of the remainder was converted to personal use, although as much as $2-3 million may be recoverable. Batts faces a statutory maximum of 50 years in prison; a sentencing date will be set later (Greenville News, DOJ).